Schaeffer's Midday Options Update Features Seibel Systems, Oracle, Sun Microsystems, IBM, and Wynn Resorts.

CINCINNATI -- Today's Schaeffer's Midday Options Update features Seibel Systems (NASDAQ:SEBL), Oracle (NASDAQ:ORCL), Sun Microsystems (NASDAQ:SUNW), IBM (NYSE:IBM), and Wynn Resorts (NASDAQ:WYNN). The Midday Options Update contains a brief commentary on the day's most notable activity and a table listing the most-active calls and puts for the day.

The Midday Options Update is published every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRMOU1M&PAGE=1 .

Options Update: Wynn Resorts, Hold 'Em or Fold 'Em?

The Commerce Department reported this morning that personal income and spending both rose to higher-than-expected levels in March. Personal income saw an increase of 0.5 percent during the month, while analysts expected to see a rise of 0.4 percent. Consumer spending also ramped higher than the consensus expected, marking a 0.6-percent rise. Analysts believed that consumer spending would rise by 0.4 percent. February's income and spending data were both revised one-tenth of a percentage point higher.

This news was followed by the University of Michigan's consumer sentiment report. According to the big blue, consumer sentiment weakened slightly in April. The index fell to 87.7 in late April from the 88.7 reading taken earlier in the month. The Chicago Purchasing Manager's Index (PMI) was also released this morning. In March, the PMI checked in at 69.2 percent, this month the index fell to 65.6 percent. Analysts had expected the index to fall to 62.3 percent. Readings over 50 percent indicate expansion in the region. This mixed bag of news has resulted in mixed action in the indexes thus far in trading action.

We're off to Siebel the Oracle

Seibel Systems (NASDAQ:SEBL) has found its way higher this morning thanks to a report that Oracle (NASDAQ:ORCL) is in talks to buy the company. The Daily Deal cited an unnamed source close to ORCL when it stated that the two tech concerns entered into talks in the past week on a possible $5-billion deal. The rumored deal has sent ORCL down by more than two percent so far in today's trading action.

There Has To Be an Invisible SUNW

Chief Executive of Sun Microsystems (NASDAQ:SUNW), Scott McNealy, along with Silver Lake Partners is considering the possibility of taking SUNW private, according to a report in Business Week. The report cites a hedge fund manager close to McNealy and the fund as the source of the information. The unnamed manager sees a leveraged buyout offer of $5 to $5.50 per share, according to the report. Spokespersons from both SUNW and Silver Lake declined to comment on rumor and speculation. SUNW shares have increased more than six percent on the news.

No Big Blues Here

Banc of America cited lowered expectations along with more negative sentiment as reasons to upgrade IBM (NYSE:IBM) from "neutral" to "buy" this morning. According to the brokerage, the combination of these two factors has resulted in an attractive reward-versus-risk profile toward the computing concern. The brokerage sees limited downside risk for IBM and anticipates gradual appreciation. IBM has been able to inch ahead by 0.20 percent.

Most-Active Options Update

At 1:52 p.m. eastern time, the Dow Jones Industrial Average (DJIA - 10,110.6) has moved ahead by 0.40 percent, followed by the S&P 500 Index (SPX - 1,146.80), which has gained 0.25 percent. The Nasdaq Composite (COMP - 1,903.1) is trying to recover from yesterday's six-month low, but has lost 0.04 percent. At 1:50 p.m., 1,865,528 calls and 1,565,263 puts had crossed the tape, for a composite put/call ratio (across all six options exchanges) of 0.83. The CBOE put/call volume ratio for equity options stood at 1.00.

Wynn Resorts

Before the sun rose over the neon-laden Las Vegas strip yesterday, gambling mogul, Steve Wynn called "all in" and played his hand with the opening of the town's newest and most expensive ($2.7 billion) mega-resort, Wynn Las Vegas. Fellow billionaire, Richard Branson, quoted in an Associated Press Online article, noted that no one in the world creates "such entertaining and beautiful casinos." In fact, the British billionaire stated that Wynn has "lifted the bar dramatically" in the world of the moderately-priced all-you-can-eat buffets. Wynn Las Vegas's 2,700 rooms occupy a staggering 217 acres in the hometown of his (previously owned) Bellagio, Mirage, and Treasure Island casinos. Wynn doesn't plan on allowing his newest resort to be his last, in fact, he is going to build an adjacent hotel-casino titled Encore.

Much like those who crowded at the doors to be among the first to set foot in the gigantic ode to odds, options players have been knocking down the doors to pessimistically file into Wynn's company, Wynn Resorts (NASDAQ:WYNN). The star-studded casino's parent company has seen 4,583 of its June 50 put (UWY RJ) cross the tape today. Currently, the firm's Schaeffer's put/call open interest ratio (SOIR) now stands at 0.79, as puts continue to creep higher in the equation. This SOIR reading is higher than 67 percent of the readings taken over the past 52 weeks, approaching the 80-percent mark that is normally seen as the threshold of a pessimistically extreme reading. Adding to these bearish feelings toward the gaming guru, we can glance at the stock's short-interest backdrop. The number of WYNN shares sold short rests at 6.83 million, which represents a hefty 14 percent of the stock's total float. To fortify our bullish view of this data, it would take more than four days for the bears to cover their short bets against WYNN, more than enough fuel for a short-covering rally.

Just to muddy the sentiment waters a little; analysts seem to feel that WYNN is a safe bet. According to Zacks, nine of the 10 analysts who cover the company rate it a "buy" or better. Optimism like this makes high odds for a downside move should the bulls switch to a bearish frame of mind.

Do WYNN's technicals give us a good read whether to bet red or black on its stock roulette wheel? Let's take a look. The house of high stakes' daily chart shows that it has recently been held in check by its descending 10-day moving average. For good measure, its 20-day trendline also lurks overhead to lend a hand should WYNN break above its 10-day counterpart. This resistance has pushed the company lower and lower, rapidly approaching the 50 level. In September 2004, WYNN was able to gap above this level and eventually parlay its support into a nice rally through mid-March 2005's all-time high of 76.45. On a monthly chart, WYNN is poised to close below the support of its 10-month moving average for the first time since July 2003. While this could be foreboding, the 50 level is ready to support WYNN as well as its ascending 20-month moving average. The worst odds against a possible WYNN-ing rally are seen on the company's weekly chart. After hitting the jackpot last month in the form of its new all-time high, WYNN's shares quickly crapped out and fell below their 10-week and 20-week moving averages. The stock is currently hovering above the 50 level, but its 10-week moving average recently completed a bearish cross of its 20-week trendline and appears poised to force WYNN to test the strength of this support. Mixed Street sentiment toward this recently suffering stock results in an ever-so-slightly bearish Schaeffer's Equity Scorecard ranking of 4.5 out of a possible 10.0.

Click on the following link to see the Weekly Chart and Equity Scorecard of WYNN since July 2004 with 10-Week and 20-Week Trendlines: http://www.schaeffersresearch.com/wire?ID=13074 .

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About Schaeffer's Investment Research (www.SchaeffersResearch.com)

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method .